Money Tips for Young People
When you are young, it is easy to live for the hear and now. It is easy to spend money on luxuries or to spend more than you earn. People run up their credit cards and get themselves into a mess. This is often where bad credit comes from. Here are a few tips on how to save money and get out of debt and not in it.
1. Save at least 10% of your income. If you can save up to one-third, it is all the better. I think 10% is a more realistic number, especially when you have kids. Why do this? Because there are times in your life when you might need this money. There are layoffs, starting your own business, or kids issues that might come up. Saving this money means sacrifice, but it is the only way to get closer to financial security.
2.When it comes to your career, don’t be cheap. This is where it is okay to spend a little bit more. This could be to create a website, educational expenses, a new outfit for work, and many other things. You can never know to much about your industry.
3. Don’t wait to invest until you have extra money. If your employer offers you an optional retirement plan, take advantage of it and invest in it. If you can do the maximum amount, that is the best alternative. But if you can’t, don’t let that hold you back. Invest something, especially if they match the money you put in.
4. Set goals for yourself. The #1 thing to do is to create goals. It is easier to achieve something if you know what it is you want to accomplish. Many studies at Harvard show that people that set goals achieve much more that don’t set them. Write them down and look at them every once in a while. This will get you to keep moving forward and not stay stagnant.
5. Pay off the credit cards with the higher balance first. When you have the option to pay 8% compared to 29%, pay the higher one first. This will cut down in the long term the amount of interest you will pay.
These are just a few things you can do to save money for your future. This will also cut down on the negative items you can put on your credit report. It will also cut down on stress knowing that you are not just living check to check.